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Nike in contract dispute with former designers

In Colorado, and everywhere else in the United States, businesses are based on contracts signed by those people or business entities involved. By signing the contract, signees agree to whatever is written in the contract. Failure to comply with the contract can result in disputes that often end in litigation. Contract disputes often arise when business partners fail to perform their duties or when employees, for example, fail to follow the rules and regulations written in their contracts.

Nike, one of the world’s largest manufacturers of footwear, recently filed a breach of contract lawsuit against three former designers. The designers joined one of Nike’s rival, Adidas. Nike is accusing the three people of breach of contract, civil conspiracy, prospective contractual and economic relations, breach of duty of good faith and fair dealing and breach of duty of loyalty. According to one of Nike’s legal representatives, the legal action aims to protect the intellectual property of the company. Nike is seeking $10 million in damages.

Contract disputes involving huge companies often lead to lawsuits. The reason behind the breach of a contract is to protect the best interests of the company and to recover damages incurred. Business owners can prevent costly litigation by using alternative methods such as mediation. However, litigation is still the best solution, especially if both parties cannot agree to the terms. Contract disputes require a thorough analysis before business owners proceed with a legal action. Failure to construct a solid legal plan can result in more losses, which can harm the company.

Business and commercial laws are complex. Business owners who are dealing with business issues such as contract disputes can obtain the facts from a legal advocate. The legal professional can provide sound advice on how to deal with such issues.

Source: Oregonlive.com, “Nike files breach of contract lawsuit against former designers,” Allan Brettman, Dec. 10, 2014


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